Toshiba is planning to sell its image sensor business to Sony for $164.68 million ($20 billion yen), reports the sources from Reuters and Bloomberg. The tech company is selling the image sensor business to raise funds. Neither Toshiba nor Sony is saying anything about this deal, but report suggests that the talks have been in process for quite some time and we may see some official announcement pretty soon.
Image sensors, which are part of LSI semiconductor business system of Toshiba, are used in digital cameras and smartphones. Toshiba is selling its image sensor business specially the manufacturing plant to Sony. This deal will allow Sony to increase the production capacity so that it matches the demand of its camera sensors.
Masashi Muromachi, who became the CEO of Toshiba after the accounting scandals has promised to restructure the lower margin businesses. This talk was first reported in Nikkei newspaper on Saturday. This deal may be the beginning step for restructuring of the company’s lower margin business.
This deal is good for Sony, as it is one of the best and dominant players in the image sensor market. Its image sensors are used in several cameras and smartphones. Sony has also broken out its sensor business to a separate company. If Sony finalizes the deal and acquire the image sensor business of Toshiba, the company will get extra boost to its already established sensor business.